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Consider the following table, which gives a security analyst's expected return on two stocks and the market index in two scenario Scenario 1 Probability Market

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Consider the following table, which gives a security analyst's expected return on two stocks and the market index in two scenario Scenario 1 Probability Market Return. Aggressive Stock 68 0.5 0.5 Defensive Stock 3.6t 10 2.19 2 16 25 Required: a. What are the betas of the two stocks? (Round your answers to 2 decimal places.) Beta A Beta Di b. What is the expected rate of return on each stock? (Round your answers to 2 decimal places.) Rate of return on A % Rate of return on D % c. If the T-bill rate is 8%, what are the alphas of the two stocks? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) Alpha A %

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